Activision was not able to confirm the amount of employees let go. Unconfirmed reports say the headcount at Radical is being reduced by half, while Neversoft will see additional layoffs after Guitar Hero 6 ships later this year.

"Activision Publishing continually evaluates its resources to ensure that they are properly matched against its product slate and strategic goals, the company said in a statement given to IGN. "In 2010, the company's SKU count will be smaller than in 2009 driven in part, by a decrease in the number of music-based games we will be releasing."

"As we discussed on our earnings conference call yesterday, we are directing our resources against the largest and most profitable business segments, and as part of this initiative, we are realigning our resources to better reflect our slate and the market opportunities. At the same time, we are increasing our digital/online capabilities as we expect that digital/online will continue to become a more meaningful part of our business model in the years ahead."